May 14, 2013
The first urea consignment of 32,000 tons, imported by Trading Corporation of Pakistan (TCP) from international market, is reaching Gwadar port this week. In January this year, the Economic Co-ordination Committee (ECC) of the Cabinet directed TCP to import 130,000 tons of urea from international market in order to avoid any shortage during Rabi season as domestic urea plant are unable to meet local demand due to gas curtailment.
Following the directives of the ECC, the state run grain trader successfully opened first urea import tender on April 24, 2013. TCP awarded contract for import of 80,000 tons of urea to the lowest bidder M/s Helm Dungemittel, GMBH at a price of $374.73 per ton Cost and Freight (C&F). The tender was for the import of 130,000 tons with minimum bid quantity of 50,000 tons, however lowest bidder offered only for 80,000 tons.
The Letter Of Credit for the import of 80,000 tons of urea was opened by TCP in the last week of April, when as per prescribed terms and conditions lowest bidder deposited five percent performance guarantee. At the same time, in order to comply with the decision of the ECC, a fresh tender for 50,000 tons has already been issued by TCP to complete the total targeted quantity of 130,000 tons.
As per schedule provided by the M/s Helm Dungemittel, the first ship namely “MV Sunshine” carrying about 32,000 tons of urea will reach Pakistan this week. First consignment is scheduled to berth at Gwadar port on May 15-16 as loading of urea on the ship has already been completed and it is likely to sail from “Ruwais Port” of Qatar on Tuesday (today). Sources said the successful bidder has also assured to supply complete quantity by June and according to shipper, another consignment of 42,000 tons of urea is likely to arrive on May 22-23 and the ship namely “MV Spring Sunshine” has already been nominated by the supplier. With arrival of these two consignments, overall import under this tender will reach 72,000 tons against the award quantity of 80,000 tons. The rest is also expected to reach Pakistan in the first week of next month.
Besides this import, TCP is already engaged in urea import from Saudi Basic Industries Corporation (Sabic) under the 100 million dollar credit facility being provided by Saudi Fund for Development (SFD). Under this agreement some four urea shipments have already been arrived, while overall some 220,000-240,000 tons of urea arrival is expected against $100 million credit facility. Sources said TCP is only responsible for the import of urea, while the distribution, transportation and bagging will be handled by National Fertiliser Marketing Limited (NFML) to ensure timely supply of urea to farmers during Rabi season. Business Recorder